A United Kingdom’s Supreme Court has ruled that Mozambique can sue shipbuilder, Privinvest in Britain for alleged bribery connected to the $2 billion “tuna bond” scandal.
The ruling on Wednesday, just weeks after a London High Court ruled that the Mozambican President, Filipe Nyusi, cannot be sued in Britain for bribery in his country’s lawsuit against Credit Suisse and others over the $2 billion “tuna bond” scandal.
Mozambique is bringing a lawsuit against Privinvest, its owner, Iskandar Safa, Credit Suisse, and others for government-guaranteed loans raised in 2013 and 2014, hundreds of millions of dollars of which disappeared.
The scandal’s notoriety began with the borrowing of $2.2 billion by three newly formed firms in 2013 and 2014, the majority of which was done without the legislature’s knowledge or authorization. Mozambique alleges that Privinvest and Safa conspired against it and distributed more than $130 million in bribes to dishonest government officials and Credit Suisse employees.
Despite that,the Mozambican government served as a guarantee for the loans, ensuring that it would return the money in the event of a problem.
The “hidden debt” or tuna bond issue has sparked criminal investigations from Maputo to New York, as well as a string of related litigation in London involving Credit Suisse, shipbuilder Privinvest, its owner Iskandar Safa, and many other parties.
Privinvest has suggested that arbitration be used to resolve any disputes with Mozambique. A setback to Mozambique’s attempts to recover the funds it claims it lost came in 2021 when the Court of Appeal ruled in the company’s favour.
But on Wednesday, the Supreme Court unanimously accepted Mozambique’s appeal against that decision, allowing the republic’s allegations against Privinvest to be heard in a trial that would last for months and begin on October 3.